Accruals, cash flows and earnings in european privately held firms

Borja Amor Tapia, María Teresa Tascón Fernández

Resumen


Este trabajo examina las propiedades de los ajustes al devengo, los flujos de caja y los resultados en las empresas europeas no cotizadas. A partir de varias hipótesis sobre la persistencia de losresultados y sus componentes, encontramos que las empresas no cotizadas parecen comportarse de forma diferente a la evidencia encontrada previamente sobre las empresas cotizadas. Lasdiferencias son significativas cuando los ajustes al devengo son extremos, dado que la persistencia del ROA y de los flujos de caja siguen patrones de comportamiento distintos a los encontrados en las empresas estadounidenses cotizadas. Pero contrariamente a nuestrashipótesis, las diferencias en la persistencia no son significativas cuando las empresas no cotizadas publican resultados positivos frente a resultados negativos.

This paper examines the properties of accruals, cash flows and earnings in European privately held firms. We start from several hypotheses about the persistence of earnings and its components, finding that private companies seem to behave in a different manner than the publicly traded firms tested in previous literature. As hypothesized, differences are significant when accruals are extreme, though in European private firms, persistence of ROA relative to cash flow follows a different pattern than in US public firms. But contrary to our expectations, differences in persistence are not significant when companies report positive versus negative earnings.

Palabras clave


Empresas no cotizadas; Propiedades del resultado; Ajustes al devengo; Flujos de caja; Private companies; Earnings properties; Accruals; Cash flows

Texto completo:

PDF (English)

Referencias


Barth, M.E.; Beaver, W.H.; Hand, J.R.M. and Landsman, W.R. (1999). "Accruals, cash flows, and equity values", Review of Accounting Studies, 4 (3/4), pp. 205-229.

Beaver, W.H. (2002). "Perspectives on recent capital market research", The Accounting Review, 77 (2), pp. 453-474.

Burgstahler, D.C. and Dichev, I.D. (1997). "Earnings management to avoid earnings decreases and losses", Journal of Accounting and Economics, 24 (1), pp. 99-126.

Burgstahler, D.C.; Hail, L. and Leuz, C. (2006). "The importance of reportingincentives: Earnings management in European private and public firms", The Accounting Review, 81 (5), pp. 983-1016.

Chan, K.; Chan, L.K.C.; Jegadeesh, N. and Lakonishok, J. (2006). "Earnings quality and stock returns", The Journal of Business, 79 (3), pp. 1041-1082.

Chan, K.; Jegadeesh, N. and Sougiannis, T. (2004). "The accrual effect on future earnings", Review of Quantitative Finance and Accounting, 22 (2), pp. 97-121.

Coppens, L. and Peek, E. (2005). "An analysis of earnings management by European private firms", Journal of International Accounting, Auditing and Taxation, 14 (1), pp. 1-17.

Dechow, P.M. (1994). "The role of accounting accruals", Journal of Accounting and Economics, 18 (1), pp. 3-42.

Dechow, P.M. and Dichev, I.D. (2002). "The quality of accruals and earnings: The role of accrual estimation errors", The Accounting Review, 77 (Suplement 1), pp. 35-59.

Dechow, P.M. and Ge, W. (2006). "The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly", Review of Accounting Studies, 11 (2-3), pp. 253-296.

Desai, H.; Rajgopal, S. and Venkatachalam, M. (2004). "Value-glamour and accruals mispricing: One anomaly or two?", The Accounting Review, 79 (2), pp. 355-385.

Dichev, I.D. (2003). "Discussion of “The differential persistence of accruals and cash flows for future operating income versus future profitability”", Review of Accounting Studies, 8 (2-3), pp. 245-250.

Fairfield, P.M.; Whisenant, S. and Yohn, T.L. (2003). "The differential persistence of accruals and cash flows for future operating income versus future profitability", Review of Accounting Studies, 8 (2-3), pp. 221-243.

Francis, J.; Olsson, P. and Oswald, D.R. (2000). "Comparing the accuracy and explainability of dividend, free cash flow, and abnormal earnings equity value estimates", Journal of Accounting Research, 38 (1), pp. 45-70.

Hayn, C. (1995). "The information content of losses", Journal of Accounting and Economics, 20 (2), pp. 125-153.

Healy, P.M. and Wahlen, J.M. (1999). "A review of the earnings management literature and its implications for standard setting", Accounting Horizons, 13 (4), pp. 365-383.

Hribar, P. and Collins, D.W. (2002). "Errors in estimating accruals: Implications for empirical research", Journal of Accounting Research, 40 (1), pp. 105-134.

Jones, J.J. (1991). "Earnings management during import relief investigations", Journal of Accounting Research, 29 (2), pp. 193-228.

La Porta, R.; López de Silanes, F.; Shleifer, A. and Vishny, R.W. (1997). "Legal determinants of external finance", Journal of Finance, 52 (3), pp. 1131-1150.

Leuz, C.; Nanda, D. and Wysocki, P.D. (2003). "Investor protection and earnings management: An international comparison", Journal of Financial Economics, 69 (3), pp. 505-527.

Lev, B. and Nissim, D. (2006). "The persistence of the accruals anomaly", Contemporary Accounting Research, 23 (1), pp. 193-226.

McNichols, M.F. (2002). "Discussion of 'The quality of accruals and earnings: The role of accrual estimation errors'", The Accounting Review, 77 (Suplement 1), pp. 61-69.

Palepu, K.G.; Healy, P.M. and Bernard, V.L. (2000). Business analysis and valuation. Using financial statements. Canada: South-Western Thomson Learning.

Penman, S.H. and Sougiannis, T. (1998). “A comparison of dividend, cash flow,and earnings approaches to equity valuation”, Contemporary Accounting Research 15 (3), pp. 343-383.

Penman, S.H. and Zhang, X.-J. (2002). "Accounting conservatism, the quality of earnings, and stock returns", The Accounting Review, 77 (2), pp. 237-264.

Pincus, M.; Rajgopal, S. and Venkatachalam, M. (2007). "The accrual anomaly: international evidence", The Accounting Review, 81 (1), pp. 169-203.

Richardson, S.A.; Sloan, R.G.; Soliman, M.T. and Tuna, I. (2005). "Accrual reliability, earnings persistence and stock prices", Journal of Accounting and Economics, 39 (3), pp. 437-485.

Richardson, S.A.; Sloan, R.G.; Soliman, M.T. and Tuna, I. (2006). "The implications of accounting distortions and growth for accruals and profitability", The Accounting Review, 81 (3), pp. 713-743.

Sloan, R.G. (1996). "Do stock prices fully reflect information in cash flows and accruals about future earnings?", The Accounting Review, 71 (3), pp. 289-315.

Subramanyam, K. and Venkatachalam, M. (2007). "Earnings, cash flows, and ex post intrinsic value of equity", The Accounting Review, 82 (2), pp. 457-481.

Xie, H. (2001). "The mispricing of abnormal accruals", The Accounting Review, 76 (3), pp. 356-373.




DOI: http://dx.doi.org/10.18002/pec.v0i2011.755

Enlaces refback

  • No hay ningún enlace refback.




Copyright (c) 2013 Borja Amor Tapia, María Teresa Tascón Fernández

Licencia de Creative Commons
Este obra está bajo una licencia de Creative Commons Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional.

Pecvnia
Revista de la Facultad de Ciencias Económicas y Empresariales, Universidad de León

Contacto: ulepec@unileon.es
Soporte técnico: journals@unileon.es

I.S.S.N. 1699-9495 (Ed. impresa)
e-I.S.S.N 2340-4272

Editada por el Área de Publicaciones de la Universidad de León